If a bank has no excess reserves, the reserve requirement is 10%, and it receives a new $2 million deposit, the bank can lend out
A. $2 million.
B. $1 million.
C. $200,000.
D. $1,800,000.
D. $1,800,000.
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When marginal cost is greater than average total cost, the
A) marginal cost decreases as output increases. B) marginal cost does not change as output increases. C) average total cost increases as output increases. D) average total cost decreases as output increases.
When you own part of a company and share in its profits, we say that you have:
A. equity in that company. B. credit with that company. C. intermediary stock in that company. D. financial diversification in that company.
Explain why a monopsonist's marginal labor cost curve must lie above its labor supply curve
Graphically, economies to scale are illustrated by
A) a downward sloping long-run average cost curve. B) a horizontal long-run average cost curve. C) an upward sloping long-run average cost curve. D) a long-run average cost curve that is shaped like an upside down U.